€5M Property Comparison : Marbella vs London, Dubai & Nice

Few luxury destinations deliver as much space, privacy and lifestyle quality as Marbella. Compared to traditional hubs like London, Dubai and the Côte d’Azur on the French Riviera, Marbella stands out for its relaxed glamour, exceptional climate and lifestyle. A deeper analysis reveals that it also excels in terms of property amenities, value and long-term costs.

Comparing Global Wealth Hotspots

London and Monaco have long been Europe’s financial powerhouses and symbols of prestige, yet in a post-Brexit and post-pandemic climate, rising costs and lifestyle reassessments mean high-net-worth individuals are redefining what “value” truly means. Price per square metre matters, but so do lifestyle, climate, tax efficiency and long-term liquidity.

Today, buyers benchmark across multiple international hubs. London and Monaco remain iconic, but Marbella, the French Riviera and Dubai now compete directly for the same global capital, each offering a different mix of lifestyle appeal, tax structure and growth prospects. Nice reflects the traditional Riviera lifestyle with heritage charm and sea views, while Marbella delivers the same Mediterranean appeal at a far more competitive price point and with a more modern housing stock. Dubai offers a contrasting proposition: ultra-modern infrastructure, zero income and capital-gains tax, strong appreciation trends and high-spec living.

Marbella has now risen into the same league as one of the world’s top luxury hubs, including Dubai, Miami, Monaco and the South of France. Unlike these more urban or high-density markets, Marbella offers its own flavour of relaxed European glamour. Voted Europe’s Best Destination in 2024, it is celebrated not only for its beauty and climate but also for its strong value proposition and consistent growth.

Offering far more space and amenities than Monaco, where prices can reach up to three times those of Marbella per square metre, and a softer, more grounded lifestyle than Dubai, Marbella blends contemporary luxury with an authentic Andalusian soul. The result is a seamless indoor-outdoor lifestyle framed by beaches, mountain views and world-class leisure amenities. Increasingly seen as a safe haven for global wealth, Marbella couples lifestyle enjoyment with capital preservation, limited supply and rising international demand.

What €5M Buys in These Leading Luxury Destinations

Understanding how far a €5 million budget stretches in each market is essential when comparing global luxury options. When you place Marbella, London, Dubai and Nice side by side, the differences in space, amenities and long-term potential are immediate and significant. The following research is based on an analysis of published online averages and real properties for sale to create comparable averages of what luxury residences can be bought for in this price range.

Figure 1 below distils the practical differences that matter most to long-term owners: size, type, outdoor space, bedrooms, bathrooms, lifestyle climate, estimated annual running costs, and purchase taxes and costs for comparable €5M properties in each of the locations.

Figure 1. Average €5M Property Comparison

For buyers seeking maximum value, €5M villas in Marbella and Dubai stand out. This budget typically secures a contemporary villa or a large luxury apartment with six bedrooms and around 5,500–6,500 sq ft (520–600 m²) of living space, if not more, including premium amenities such as infinity pools, private gyms, spa areas, home cinemas and expansive terraces. Most of Marbella’s luxury villas are built for indoor-outdoor living, offering resort-level facilities hard to match in Western European capitals or in the older stock of the Riviera.

By contrast, a €5M property on the French Riviera, whether in Nice, Cap Ferrat or Cannes, typically delivers 2,200–3,700 sq ft (200–350 m²) and four to five bedrooms. These homes often provide charm and sea views but are generally older, smaller and on more compact plots. A 6,000 sq ft villa in a prime Riviera location could exceed €10M, meaning buyers pay almost double for similar scale and luxury.

In London’s prime districts, €5M buys around 2,400 sq ft (220 m²) with three to four bedrooms and limited private outdoor space. A luxury Marbella apartment of similar size would typically fall in the €1–2M range, often within a gated community with gardens, pools and wellness facilities. For those prioritising space, privacy and outdoor living, London offers the lowest value per square metre, and Marbella the highest.

Comparing the Details: Space, Tax and Running Costs

Purchase price per square metre is only one piece of the equation. Discerning buyers also weigh up all the amenities included, tax exposure and what it costs to live or maintain the property: all factors that vary significantly across the four markets. It is clear from the table in Figure 1 above that Marbella and Dubai offer the overall best value for money.

Figure 2 below shows a visual comparison of the average indoor and outdoor space €5M buys you in each location. Once again, it is very clear that Marbella and Dubai offer the strongest price-to-size ratio, while London provides prestige at substantially higher cost and significantly less space.

Figure 2. Indoor/Outdoor Space for €5M Property

Characteristics and Amenities

Each market offers a distinct style of living at the €5M level. In London, buyers typically access heritage-style homes such as mansion flats or mews houses with modest outdoor areas. In Nice, properties tend to be elegant Riviera apartments or older Provençal villas in the countryside with smaller gardens and more traditional layouts.

In contrast, Marbella and Dubai provide a more contemporary lifestyle centred on privacy, space and leisure. Homes at this price level commonly include high-spec interiors, open layouts, private pools and landscaped outdoor areas. Marbella emphasises Mediterranean outdoor living with terraces and mountain or sea views, while both markets increasingly incorporate hotel-style services, smart-home systems, marina or beachfront access, and luxury-branded residences.

Outdoor space is where the difference is most pronounced. London and Nice usually offer balconies or compact terraces, while Marbella and Dubai enjoy generous gardens, pools and shaded outdoor lounges that support year-round living. For lifestyle-driven buyers seeking modern amenities and privacy, Marbella and Dubai offer significantly more at the €5M level, or probably at any level.

Purchase Costs and Taxes

Purchase costs and long-term taxation structures differ significantly across these markets, greatly affecting the real costs of buying and owning properties in the respective locations. Dubai remains the most cost-efficient option at the point of acquisition, with a one-time 4% transfer fee and a 2% agency commission, amounting to approximately €300,000 for a €5 million property. Nice follows, with notarial fees and taxes totalling 7–8% for resale properties, translating to €350,000–€400,000 in costs.

Marbella’s property purchase costs are typically around 10% for resales or 12% for new builds, including transfer tax, stamp duty, notary fees and legal fees, equating to approximately €500,000 for most resale properties. London ranks highest, with stamp duty reaching up to 15% for non-residents purchasing second homes, plus additional legal and professional fees, resulting in total purchase expenses ranging from €500,000 to €750,000. These one-time costs are important at the time of purchase but should be considered alongside running costs and tax structures when evaluating longer-term investments.

Figure 3 below gives a calculated comparison of purchase costs, as well as annual running costs for the sample property types, and an overview of the tax structures. When summing purchase, tax and running costs, Dubai seems to offer the lowest costs, although performing highest on running costs, which would balance out the lower purchase costs for longer-term ownership. But as we will see below, taking long-term taxes into account, Marbella delivers the strongest combination of space, lifestyle and low running costs.

Figure 3. Estimated Average €5M Property Purchase and Running Cost Comparison

Ownership and Running Costs

Running costs further differentiate these markets. London and Nice appear to be the most expensive to maintain, with annual expenses of €30,000–€55,000 driven by council taxes, service charges and the upkeep of older buildings. Marbella presents as far more cost-efficient, with a comparable apartment costing €11,500–€17,000 per year and even large villas typically well below the cost of owning a smaller London flat.

Dubai’s operating costs are the highest of the four due to air-conditioning usage and substantial community fees, with some prestigious villas estimated at €38,500–€65,300 annually. These costs are often offset mainly by Dubai’s very competitive tax environment. Figure 4 below shows a breakdown of average estimated running costs for comparable properties in each of the markets, including a Marbella apartment comparable to what €5M would buy you in London, showing that running costs are most competitive in Marbella compared to the other three locations.

Figure 4. Breakdown of Average Running Cost Estimates for €5M Property

Long-Term Tax Structures

Long-term tax exposure adds further contrast to the comparison. Dubai offers the clearest structure: no income tax, capital gains tax or wealth tax, with only a 5% municipal housing fee based on imputed rental value (approximately €12,500 annually). However, if owned through a corporate structure, 9% corporate tax applies to profits over €90,000, potentially adding €10,000–€20,000 annually for rented properties. For individual owners, Dubai clearly performs best.

Marbella abolished Andalusia’s regional Wealth Tax, but Spain’s national Solidarity Tax now applies to net wealth exceeding €3M at 1.7% for assets between €3–5.35M (approximately €22,100 annually for a €5M property without deductions). Spanish residents face progressive income tax reaching 47% from €300,000, while non-residents pay flat rates on Spanish-sourced income: 19% for EU residents and 24% for non-EU residents, with favourable deductions for EU owners.

France levies the most comprehensive taxes: Taxe Foncière (property tax), Taxe d’Habitation on second homes, and IFI wealth tax on the debt-free portion of properties over €1.3M (approximately €41,690 annually for a €5M property without deductions—nearly double Spain’s wealth tax). French residents face progressive income tax up to 45% above €180,300, though non-residents benefit from a 20% maximum bracket. Rental income is taxed at 20–30%, plus social charges of 7.5–17.2% for non-residents. While Spain offers better rental income conditions, non-residents may benefit from France’s income tax treatment depending on their profile.

London imposes no wealth tax, making it competitive for luxury property owners focused on capital preservation. However, rental income counts towards general income tax for all residents, taxed at marginal rates up to 45% above £125,140 (increasing to 47% in 2027), meaning high-income earners will pay very high rates on rental income.

From an income tax perspective, key differences exist between jurisdictions. Dubai does not tax individuals on local or overseas income (only corporate tax applies), while in the UK, France and Spain, tax residents are generally taxed on worldwide income and non-residents only on locally sourced income. However in Spain, tax residency is mainly triggered by spending more than 183 days in the country or by relocating one’s centre of economic or family interests, meaning it is possible to own property and remain non-tax resident. In addition, under certain regimes such as the Digital Nomad Visa combined with the Beckham Law, some individuals may be Spanish tax resident while benefiting from special international tax treatment for up to six years: contributing another compelling factor to buy and relocate to Marbella.

In summary, the four markets present distinctly different approaches. Dubai offers the most transparent framework for individual owners with minimal obligations. Marbella provides moderate tax exposure, particularly attractive for EU investors. France carries the highest combined wealth and income tax burden. London, while lacking a wealth tax, imposes a steep income tax on rental earnings. Without considering individual deductions and circumstances, direct comparisons remain complex, so an appropriate tax or fiscal consultant should be consulted for personalised advice.

Price Performance and Projected Capital Growth

Putting on an investor’s hat, Marbella has delivered some of the strongest price growth in Europe. Official Notary data shows average sold prices have nearly doubled over the past decade, with annual growth of 12.6% in 2024 and consistent momentum driven by limited supply and sustained international demand. Dubai has also seen strong growth, averaging 12.5% in 2024, after a post-2021 resurgence supported by tax incentives and residency programmes.

Nice and the wider French Riviera area have shown more modest increases, with around 4.5% annual growth in 2024 and steady mid-term appreciation. By contrast, London prices have largely plateaued or even experienced slight dips, constrained by high transaction costs, increased regulation and stronger global competition. Across the past decade, Marbella has shown the strongest long-term market trajectory, followed by Dubai, while Nice and London have experienced slower growth patterns.

Figure 5 below provides an excellent visual comparison of the trajectories of average property prices per square metre across the four locations over the last 10 years. Based on data from the Dubai Land Department, Notaires de France annual reports, Plumplot, and Spanish Notariado reports, not all figures are reliable for sold price data in each location. However, Marbella data is actual sold data from the Notary, showing the most consistent growth and promising trajectory, along with Nice, though the graph reinforces that Nice offers less value per square metre.

Figure 5. Average Property Prices per Square Metre

Wellbeing, Safety and Environmental Quality

When you consider safety and environmental quality, Dubai and Marbella also lead, another of the very many synergies between these two lifestyle destinations. While a complete comparison using the same scale across the four cities at the same time is not available, we have taken averages from various sources to provide comparative values, including Gulf News, Scribd and Numbeo.

From these averages, Dubai ranks as the safest, with a crime index of around 16.4, followed by Marbella at 45.9, Nice at 48.2 and London at 53.4. While Marbella has occasionally appeared in headlines for organised crime, this rarely affects residents, and both Marbella and Dubai are consistently reported as feeling safe in day-to-day life. Nice and London tend to see more opportunistic theft, particularly in tourist areas.

Similarly, air quality averages suggest that Marbella stands out as the cleanest of the four. Marbella enjoys some of Europe’s cleanest coastal air, with PM2.5 levels typically within or close to WHO guidelines at 5–9 µg/m³. Nice and London sit in the moderate range, while Dubai’s levels are higher due to dust and pollution, averaging around 29 µg/m³. These factors strengthen Marbella’s appeal for wellness-focused buyers seeking a healthy, outdoor-led lifestyle.

Location and Lifestyle as Investment Drivers

Despite all the figures and numbers, lifestyle remains one of the strongest differentiators of the locations. London offers cultural prestige and educational access, but smaller homes, high costs and less favourable weather. Nice provides Riviera charm and sometimes walkability, but lacks the modern amenities found in newer luxury markets. Dubai offers spectacular villas and year-round sunshine, but extreme summer heat results in a more indoor-focused lifestyle in the warmer months.

It should also be noted that many venues do not serve alcohol in the UAE, although non-Muslim adults are allowed to bring four litres of alcohol upon entry for personal use in private spaces. Not a big deal for many, and certainly makes for a safe environment, but it does mean a different way to dine and indulge in Dubai that potential buyers should take into consideration.

Marbella combines the strengths of all three markets. It delivers excellent climate, modern housing, expansive outdoor living, world-class restaurants and other amenities, all within a vibrant Spanish coastal town. The ease of movement, privacy of villa living and Marbella’s stunning beaches, golf, dining and international schools create a lifestyle that appeals to both full-time residents and second-home buyers. Dubai offers comparable luxury in a more urban format, while Nice offers charm but less space. London remains globally important but offers much smaller living environments. For many international buyers, Marbella strikes the most compelling balance of lifestyle, value and long-term usability.

Who’s Buying Where? International Luxury Buyer Trends

Global transactions above €3M have shifted significantly, with Marbella and Dubai seeing the strongest growth in international demand. UK, Northern European and US buyers are increasingly active, attracted by lifestyle, climate and long-term value. In Marbella, August 2025 Notary data shows that 63% of purchases for the year were made by foreign buyers, and approximately 90% of prime-segment purchases in the past decade were international. Not surprisingly, given the analysis above, London’s ultra-prime segment has softened due to high taxes and acquisition costs, while the Riviera remains stable but less dynamic.

Why Marbella Stands Out

Across every major metric space, climate, amenities, tax efficiency, running costs, capital appreciation and lifestyle—Marbella and Dubai tend to deliver more value for the same €5M investment. London and the Riviera offer heritage and prestige, while Dubai provides ultra-modern luxury and tax benefits that offset high running costs for a luxury home. Taking it all into account, Marbella uniquely combines all three: lifestyle, value and long-term resilience.

Increasingly viewed as a safe haven for global wealth, Marbella offers privacy, panoramic views, a cosmopolitan community and some of Europe’s most reliable year-round weather. As lifestyle-driven buyers become more mobile, Marbella and the Costa del Sol are emerging not just as an alternative but as one of Europe’s strongest and most compelling luxury property markets for the decade ahead.

For expert insights and property guidance in the Marbella, Estepona, Benahavís or Costa del Sol areas, contact MPDunne.